Bangalore Turf Club Chairman L Shivashankar is optimistic that the current impasse with the Karnataka Government over the relocation terms, lease conditions and the suspension of the club`s off-course betting licence can be resolved soon, paving the way for a compromise petition to be placed before the Supreme Court in the pending eviction matter.

Shivashankar said discussions with the government on the land at Kunigal, lease terms and rental structure were progressing and that the club had practically conveyed its willingness to accept the government`s proposal, subject to resolving a few critical issues.

The government has proposed that the BTC relocate to a portion of the Kunigal Stud Farm on an initial 29-year lease, with an annual rent equivalent to 2.5 per cent of the guidance value, subject to revision as the guidance value increases. The club, meanwhile, has sought four acres at its present Bengaluru premises to conduct betting activities and run the club after relocation.

While the government has agreed to provide the four acres, it has proposed the same 2.5 per cent lease rent, which would work out to around Rs 9 crore a year. The BTC has sought a substantially lower rate of 0.5 per cent, arguing that the proposed rent would be difficult to sustain given the club`s revenue constraints.

The club has pointed out that 40 per cent of turnover is already paid as tax, substantially reducing the money available for circulation within the racing ecosystem. It estimates that, on various counts, around 63 per cent of its earnings ultimately goes to the government.

The principal sticking point, however, is the tenure of the four acres in Bengaluru. While the Kunigal lease is proposed for 29 years, the government has not indicated a similar long-term tenure for the Bengaluru land. Shivashankar has conveyed to the government that without a clearly defined and sufficiently long tenure, it would be difficult for the club to attract fresh members, raise funds and plan its future operations. He has therefore sought that the four acres be granted for the same period as the Kunigal land.

The matter is expected to go before the Cabinet since the earlier arrangements and decisions concerning the club`s land were approved by the Cabinet. The two major issues still to be settled are therefore the lease rent for the four acres and the duration of the lease.

The BTC Managing Committee has held discussions with the Additional Chief Secretary to the Chief Minister as well as a Cabinet Minister who is also a member of the club. The Minister is understood to have taken up the matter with the Chief Minister and sought sympathetic consideration.

The club has also scheduled a Special General Body Meeting on September 16 to consider and approve the final terms emerging from the negotiations. The earlier general body mandate was only to continue discussions with the government and return for approval once the terms of a compromise petition had been settled.

The compromise petition assumes particular importance because the government has made it clear that the off-course betting licence, which has remained suspended for more than two months, cannot be restored in the absence of a concrete draft compromise arrangement. Approval of the compromise petition would also be an important step towards resolving the Supreme Court proceedings concerning the eviction of the club.

Shivashankar remains hopeful that the discussions will produce a solution quickly. He said the club was prepared to move forward with the government on virtually all issues and was looking for an arrangement that would ensure the continuance of racing.

The mood at the club is therefore one of cautious optimism. A settlement on the four-acre lease, its tenure and the related financial terms could unlock the larger package, including the compromise petition before the Supreme Court and restoration of the off-course betting licence.

Ultimately, however, much will depend on the response of the Chief Minister, whose position on the issue has at times been viewed as inflexible. For the moment, the BTC leadership appears confident that the remaining differences can be bridged and that the present imbroglio may finally be heading towards a quick fix.